Live
- ‘Get Set, Grow Summit 2024’ Focuses on Digital Detox for Families
- Stokes motivates his team to put in extra effort, says England pacer Potts
- From overcoming setbacks to leading India in U19 Women’s Asia Cup, Niki Prasad's amazing journey
- Driving Enterprise Security: Inside Venkata Reddy Thummala’s Leadership Journey
- Constitution debate: PM Modi hails 'Nari Shakti'; makes strong pitch for 'United Bharat’
- Abhijeet Bhardwaj: Revolutionizing Enterprise Analytics with Innovation and Expertise
- Bihar: Inquiry initiated against principal who went to buy veggies during school hours
- Press Sri Lankan Prez for release of Indian fishermen: TN Cong MP to EAM Jaishankar
- TN: DMK postpones executive meet due to heavy rains & Parliament session
- Porous silicon oxide electrodes can fix durability issues in batteries: Researchers
USD1 billion club in engineering services may soon include TCS, Wipro
TCS, Wipro to soon join HCL in $1 billion engineering services club
Indian IT behemoths TCS and Wipro are close to entering the $1-billion club in engineering services. HCL Technologies is currently the only Indian player in that league.
Globally, six service providers have crossed the $billion mark, led by French engineering consulting firm Altran with $2.16 billion in revenue in 2015, followed by another French engineering major, Alten, with revenue of $1.71 billion, as per a recent study by HfS Research.
Others include Austria-based powertrain engineering company AVL ($1.25 billion), HCL Technologies ($1.16 billion), French firm Akka Technologies ($1.11 billion) and Germany-based automobile engineering major Bertrandt ($1.06 billion).
Cognizant, Infosys, Tech Mahindra, Aricent, and L&T Technology Services also figure in the top 20 global providers' list, all having crossed $500 million in revenue.
Engineering services has emerged as a new growth engine for Indian IT services firms at a time when their mainstay businesses like application development and maintenance are getting commoditized leading to margin pressures. HfS categorizes engineering services into four segments mechanical, embedded, software product and product lifecycle management services.
"As engineering services is transitioning from a niche offering to mainstream, there is great interest from the buy-side, investors, and sourcing advisors to better understand the industry structure, segments and key players," said Pareekh Jain, research director-engineering services at HfS Research."European service providers often have a strong position in mechanical engineering services. Indian service providers tend to be strongest today in the embedded engineering and software product engineering segments."
Engineering services is one of the fastest growing segments within the Indian IT sector. It grew by 12.6% in 2015, higher than the 10.3% growth for IT services exports and 8.8% growth for BPM (business process management) exports.
Source: techgig.com
